Oil and Gas Receipts Down, District Government Bojonegoro Send Letter to President

The District Government (Pemkab) Bojonegoro plans to send a letter to President Joko Widodo regarding the revenue sharing revenue (DBH) of oil and gas as well as other local income is lower. The letter will be sent this week.

Head of Revenue Service Bojonegoro Herry Sudjarwo explained that the letter will be submitted concerning the existence of oil and gas DBH in the area which directly cut the cost recovery of oil project Block Cepu. According to the letter received from the Ministry of Finance, Bojonegoro had to pay the "cost recovery" of the Cepu Block project amounting to Rp 550 billion.

Related to that, the district government has submitted a proposal to the Ministry of Finance for the cost recovery of the Cepu Block project to be paid in five years. "But the proposal did not get a response," he said.

He gave the description of the acquisition of oil and gas DBH in the first quarter only Rp 147 billion, whereas the calculation of the acquisition of oil and gas DBH for the first quarter could reach Rp 400 billion. Not to mention the distribution of oil and gas DBH in 38 districts/cities in East Java, this year no one gained due to cost recovery cuts.

"If it is normal for each regency/city in East Java, get Rp 24 billion per year," he said.

Therefore, the Government of Sidoarjo Regency will visit Bojonegoro to question the absence of oil and gas revenue from oil and gas block Cepu Block this year.

"The plan of the Government of Sidoarjo Regency will be to Bojonegoro, today, Thursday (20/4) They are questioning because the calculation of the acquisition of DBH oil and gas participation has been allocated in APBD," he said.

Furthermore, he also explained that in the calculation of APBN for the allocation of general allocation fund (DAU), a region of oil and gas producers will decline, considering that they have obtained bigger oil and gas DBH compared to other regions that are not oil and gas producers.

As a result, local DAU revenue of Rp 900 billion in 2017, lower than other regions that are not oil and gas producers, such as Blitar that can get DAU Rp 1.2 trillion

"With the acquisition of Rp 900 billion DAU, it is only enough to pay Civil Servants (PNS), we will also submit for DAU division there should be a review," he asserted.

IN INDONESIAN

Penerimaan Migas Turun, Pemerintah Kabupaten Bojonegoro Kirim Surat ke Presiden

Pemerintah Kabupaten (Pemkab) Bojonegoro berencana mengirim surat kepada Presiden Joko Widodo terkait penerimaan dana bagi hasil (DBH) migas juga pendapatan lainnya daerah setempat yang semakin rendah. Surat tersebut akan dikirim pekan ini. 

Kepala Dinas Pendapatan Bojonegoro Herry Sudjarwo menjelaskan surat yang akan disampaikan itu menyangkut adanya DBH migas di daerahnya yang langsung dipotong cost recovery proyek minyak Blok Cepu. Sesuai Surat yang pernah diterima dari Kementerian Keuangan, Bojonegoro harus membayar "cost recovery" proyek Blok Cepu sebesar Rp 550 miliar.

Terkait hal itu, Pemerintah kabupaten pernah mengajukan usulan kepada Kementerian Keuangan agar cost recovery proyek Blok Cepu itu diangsur lima tahun. "Tapi usulan itu tidak memperoleh tanggapan," ujarnya.

Ia memberikan gambaran perolehan DBH migas daerahnya triwulan I hanya Rp 147 miliar, padahal perhitungannya perolehan DBH migas untuk triwulan I bisa mencapai Rp 400 miliar. Belum lagi pemerataan DBH migas di 38 kabupaten/kota di Jawa Timur, pada tahun ini tidak ada yang memperoleh disebabkan adanya pemotongan cost recovery.

“Kalau normalnya seharusnya masing-masing kabupaten/kota di Jawa Timur, memperoleh Rp 24 miliar per tahunnya, " katanya.

Oleh karena itu, Pemerintah Kabupaten Sidoarjo akan berkunjung ke Bojonegoro untuk mempertanyakan tidak adanya penerimaan DBH migas minyak Blok Cepu tahun ini.

"Rencanannya Pemerintah Kabupaten Sidoarjo akan ke Bojonegoro, hari ini, Kamis (20/4). Mereka mempertanyakan karena perhitungan perolehan DBH migas penyertaan sudah dialokasikan di dalam APBD, " tegasnya.

Lebih lanjut ia juga menjelaskan dalam perhitungan APBN untuk pembagian dana alokasi umum (DAU) suatu daerah penghasil migas akan turun, dengan pertimbangan sudah memperoleh DBH migas lebih besar dibandingkan dengan daerah lain yang bukan penghasil migas.

Akibatnya penerimaan DAU daerahnya sebesar Rp 900 miliar pada 2017, lebih rendah dibandingkan daerah lain-nya yang bukan penghasil migas, seperti Blitar yang bisa memperoleh DAU Rp 1,2 Triliun

"Dengan perolehan DAU Rp 900 miliar, hanya cukup untuk membayar Pegawai Negeri Sipil (PNS). Kami juga akan menyampaikan untuk pembagian DAU harus ada peninjauan ulang," katanya menegaskan.

Memorandum, Page-17, Thursday, April, 20, 2017

The Rules of Return on Oil and Gas Investment need to be clarified

The oil and gas industry asks the government to clarify the rules regarding the mechanism of return on investment costs to contractors of KKKS cooperation contracts at the end of the contract period.

As is known, dated March 29, 2017, Minister of Energy and Mineral Resources (EMR) Ignasius Jonan stipulates Minister of Energy and Mineral Resources Regulation N026 / 2017 on Investment Cost Reversal Mechanism on Upstream Oil and Gas Business Activities.

The regulation is designed to maintain the level of production and optimization of state revenues from upstream oil and gas business activities by requiring the contractor to maintain the fairness of oil and gas production level until the end of the contract period.

Therefore, the contractor is obliged to invest in the working area. In the framework of the investment, the contractor gets the return of investment cost during the contract period. In the event that the cooperation contract is extended and there is still an investment cost that has not been refunded, the refund can be continued during the contract renewal period.

In the event that the cooperation contract is extended using a gross split sharing contract and there is still an investment cost, the remaining non-refundable investment costs are taken into account on the contractor's part. 

     Meanwhile, if there is another party as a new contractor other than the old contractor, then the new contractor must bear the remaining investment cost that has not been returned proportionally according to the amount of participating interest. 

     However, if the contract is not renewed and there are still non-refundable investment costs, the return on investment costs will be borne by the new contractor.

Marjolijn Wajong, Executive Director of Indonesian Petroleum Association (IPA), said the scheme would only appeal to assets that offer sufficient economics to contractors. However, if the economy of the oil and gas block is low, it will be difficult for the new contractor to bear all unrecoverable costs in advance before the contract expires.

"If the economy is good, then it can be accepted by new contractors, but if the economy is ugly, then it is difficult to be accepted by new contractors," he said.

Related to that, Upstream Director of PT Pertamina Syamsu Alam asked for clarity regarding payment mechanism and unrecovered cost calculation which must be borne. "The payment mechanism and the unrecovered cost obligations that must be covered must be adjusted to the applicable accounting rules," he said.

As is known, Pertamina is assigned by the government to manage several working areas that will expire, including Attaka Block, Mahakam Block, Tuban Block, Ogan Komering Block, Sanga-Sanga Block, South East Sumatera Block, Central Block, North Sumatera Offshore Block, And East Kalimantan Block.

Related to the new regulation, according to him, Pertamina budgeted its investment returns in 2018 for the replacement of unrecovered costs in eight working areas assigned by the government. However, until now Pertamina can not do the calculation in detail.

"But the investment value is estimated not too high because of the eight oil and gas blocks, the three regions have been managed first," he said.

EMR Deputy Minister of Energy Arcandra Tahar previously said that contractors who take over oil and gas blocks that have expired their contracts are obliged to refund costs previously incurred by operators in cash. According to him, the contractor must have the calculation and the right study if you want to get the return of investment as initial capital to start production.

Based on data from the Special Working Unit for Upstream Oil and Gas Executives (SKK Migas), the realization of oil production until the end of March reached 815,600 barrels per day (BPD) and gas in the same period reached 6,503 million cubic feet per day (MMSCFD).

The realization of upstream oil and gas investment in the quarter I / 2017 amounted to USD1, 90 billion, down 32% compared with the realization of the same period last year USD 2.80 billion. The target of upstream oil and gas investment this year is USD13, 80 billion.

Secretary of SKK Migas Budi Agustyono said up to now upstream oil and gas activities are still running as planned. No contractor has proposed changes in informal work. SKK Migas is optimistic that this year's investment target can be achieved.

IN INDONESIAN

Aturan Pengembalian Investasi Migas Perlu di Perjelas

Industri migas meminta pemerintah memperjelas aturan mengenai mekanisme pengembalian biaya investasi kepada kontraktor kontrak kerja sama KKKS pada akhir masa kontrak kerja sama.

Seperti diketahui, tanggal 29 Maret 2017 Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan menetapkan Peraturan Menteri ESDM N026/2017 tentang Mekanisme Pengembalian Biaya Investasi pada Kegiatan Usaha Hulu Minyak dan Gas Bumi. 

Aturan itu dibuat untuk menjaga tingkat produksi dan optimalisasi penerimaan negara dari kegiatan usaha hulu migas dengan mewajibkan kontraktor menjaga kewajaran tingkat produksi migas sampai berakhirnya masa kontrak kerjasama.

Untuk itu, kontraktor wajib melakukan investasi di wilayah kerja. Dalam rangka investasi tersebut, kontraktor mendapatkan pengembalian biaya investasi selama masa kontrak kerja sama. Dalam hal kontrak kerja sama diperpanjang dan masih terdapat biaya investasi yang belum dikembalikan, pengembaliannya dapat dilanjutkan selama masa perpanjangan kontrak kerjasama.

Dalam hal kontrak kerja sama diperpanjang menggunakan kontrak bagi hasil gross split dan masih terdapat biaya investasi, sisa biaya investasi yang belum dikembalikan diperhitungkan dalam bagian kontraktor. 

     Sementara, jika terdapat pihak lain sebagai kontraktor baru selain kontraktor lama, maka kontraktor baru harus menanggung sisa biaya investasi yang belum dikembalikan secara proporsional sesuai besaran participating interest. 

     Namun, jika kontrak kerjasama tidak diperpanjang dan masih terdapat biaya investasi yang belum dikembalikan, pengembalian biaya investasi ditanggung kontraktor baru.

Direktur Eksekutif Indonesian Petroleum Association (IPA) Marjolijn Wajong menilai skema itu hanya akan menarik bagi aset-aset yang menawarkan keekonomian cukup bagi kontraktor. Namun, apabila keekonomian blok migas rendah, menurutnya akan sulit bagi kontraktor baru menanggung seluruh unrecovered cost di awal sebelum kontrak berakhir. 

"Kalau secara keekonomian baik, maka bisa diterima oleh kontraktor baru, tetapi kalau secara keekonomian jelek, maka sulit untuk diterima oleh kontraktor baru," katanya.

Terkait dengan itu, Direktur Hulu PT Pertamina Syamsu Alam meminta kejelasan mengenai mekanisme pembayaran dan perhitungan unrecovered cost yang harus ditanggung. "Mekanisme pembayaran dan perhittmgan unrecovered cost yang harus ditanggung hrus disesuaikan dengan kaidah akuntansi yang berlaku,” ujarnya

Seperti diketahui, Pertamina ditugasi pemerintah untuk mengelola beberapa wilayah kerja yang akan habis masa kontraknya, antara lain Blok Attaka, Blok Mahakam, Blok Tuban, Blok Ogan Komering, Blok Sanga-Sanga, Blok South East Sumatera, Blok Tengah, Blok North Sumatera Offshore, dan Blok East Kalimantan. 

Terkait aturan baru itu, menurut dia, Pertamina menganggarkan dana pengembalian investasi pada 2018 untuk penggantian unrecovered cost di delapan wilayah kerja yang telah ditugaskan pemerintah. Namun, sampai saat ini Pertamina belum bisa melakukan perhitungan secara detail.

"Tapi nilai investasi diperkirakan tidak terlalu tinggi karena dari delapan blok migas, tiga wilayah telah dikelola terlebih dahulu,” kata dia. 

Wakil Menteri ESDM Arcandra Tahar sebelumnya mengatakan, kontraktor yang mengambil alih blok minyak dan gas bumi yang telah habis masa kontraknya wajib mengembalikan biaya yang telah dikeluarkan operator sebelumnya secara tunai. 

     Menurut dia, kontraktor harus memiliki perhitungan dan kajian tepat jika ingin mendapatkan pengembalian investasi sebagai modal awal untuk memulai produksi.

Berdasarkan data Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Migas (SKK Migas), realisasi produksi minyak sampai akhir Maret mencapai 815.600 barel per hari (bph) dan gas pada periode yang sama mencapai 6.503 juta kaki kubik per hari (MMSCFD). 

Adapun realisasi investasi hulu migas pada kuartal I/2017 sebesar USD1,90 miliar, turun 32% dibandingkan dengan realisasi periode yang sama tahun lalu USD 2,80 miliar. Adapun target investasi hulu migas pada tahun ini USD13,80 miliar.

Sekretaris SKK Migas Budi Agustyono mengatakan, sampai saat ini kegiatan hulu migas masih berjalan sesuai rencana. Belum ada kontraktor yang mengusulkan perubahan kegiatan kerja secara informal. SKK Migas optimistis target investasi pada tahun ini dapat tercapai.

Koran Sindo, Page-8, Thursday, April, 20, 2017

The Republic of Indonesia Hopes on Oil and Gas Investment

The government hopes that the visit of US Vice President Mike Pence this weekend can encourage investors from Uncle Sam's country to invest upstream and downstream oil and gas in the country.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) I Gusti Nyoman Wiratmaja Puja hopes that the arrival of the second person of the United States can attract investors to invest in Indonesia. Indonesia became one of four countries visited by US Vice President Mike Pence namely Japan, South Korea, and Australia.

In addition, Pence arrival can increase investment in the upstream and downstream sector of oil and gas. As an illustration, investment from companies from the United States has just been seen in the upstream oil and gas sector with the contribution of activities undertaken by Chevron, ExxonMobil, and ConocoPhillips.

As of March 31, 2017, KKKS's investments reached US $ 1.9 billion or 14% of the government's target of US $ 513.8 billion this year.

In terms of production, Chevron has produced 230,170 barrels per day (bpd) of oil in the first quarter of 2017, ExxonMobil in Cepu Block at 196,443 bpd. The oil production from the two US companies contributed about 52 percent of the realization of the production of ready-to-sell oil (lifting) in Indonesia at 815,797 bpd during the first quarter of 2017. ConocoPhillips on the Corridor Block produces 1.013 million cubic feet per day (MMscfd) or 13% of the 7,740 MMscfd gas lifting rate.

Wiratmaja hopes that the oil and gas company will invest in the development of deep-sea work areas and non-conventional oil and gas blocks. "We are expecting the momentum of the Vice President's visit to increase US investment in oil and gas, especially in deep sea exploration and marine exploration, and non-conventional," he said.

In addition to the upstream sector, there are other opportunities in the downstream sector of oil and gas that can be cultivated by US investors, such as refinery projects, gas infrastructure, and liquefied natural gas facilities. In addition, cooperation opportunities for oil and gas supply from the United States can also be possible because Pertamina has signed the purchase of liquefied natural gas from 2019.

Deputy Minister of EMR Arcandra Tahar said during ExxonMobil Senior Vice President's visit Corporation Mark W. Albers on Thursday (6/4), there is a positive signal the development of the block. According to him, ExxonMobil will deliver its commitment to accelerate the project through a letter to be sent within a month

Previously, there was an option to sign the East Natuna Block contract between ExxonMobil and the government in 2016. However, it was canceled due to market and technology review still running.

IN INDONESIAN

Republik Indonesia Berharap Investasi Migas

Pemerintah berharap agar kunjungan Wakil Presiden Amerika Serikat Mike Pence pada akhir pekan ini dapat mendorong investor asal Negeri Paman Sam itu menanamkan investasi sektor hulu dan hilir minyak dan gas bumi di Tanah Air. 

Direktur Jenderal Minyak dan Gas Bumi Kementerian Energi dan Sumber Daya Mineral (ESDM) I Gusti Nyoman Wiratmaja Puja berharap agar kedatangan orang nomor dua Amerika Serikat itu dapat menarik investor menanamkan modal di Indonesia. Indonesia menjadi satu di antara empat negara yang dikunjungi Wakil Presiden AS Mike Pence yakni Jepang, Korea Selatan, dan Australia.

Selain itu, kedatangan Pence dapat menaikkan investasi di sektor hulu dan hilir migas. Sebagai gambaran, investasi dari perusahaan asal Amerika Serikat baru saja terlihat di sektor hulu migas dengan kontribusi kegiatan yang dilakukan oleh Chevron, ExxonMobil, dan ConocoPhillips.

Hingga 31 Maret 2017, investasi yang sudah dikeluarkan KKKS mencapai US$1,9 miliar atau 14 % dari target yang ditetapkan pemerintah US$513,8 miliar pada tahun ini.

Dari sisi produksi, Chevron telah menghasilkan minyak 230.170 barel per hari (bph) pada kuartal I/2017, ExxonMobil di Blok Cepu sebesar 196.443 bph. Produksi minyak dari dua perusahaan AS itu berkontribusi sekitar 52% dari realisasi produksi minyak siap jual (lifting) di Tanah Air 815.797 bph selama kuartal I/2017. ConocoPhillips di Blok Corridor menghasilkan gas 1.013 juta kaki kubik per hari (MMscfd) atau 13% dari rerata lifting gas 7.740 MMscfd.

Wiratmaja berharap agar perusahaan migas tersebut berinvestasi untuk pengembangan wilayah kerja di laut dalam dan blok migas non-konvensional. “Kita mengharapkan momentum kedatangan Wapres USA ini dapat meningkatkan Investasi AS di bidang migas terutama eksplorasi dan eksploitasi laut dalam, dan non-konvensional," ujarnya 

Selain sektor hulu, ada peluang lain di sektor hilir migas yang bisa digarap investor AS, seperti proyek kilang, infrastruktur gas, dan fasilitas gas alam cair. Selain itu, peluang kerja sama pasokan migas dari Amerika Serikat pun bisa dimungkinkan karena sebelumnya Pertamina telah meneken pembelian gas alam cair mulai 2019.

Wakil Menteri ESDM Arcandra Tahar mengatakan dalam kunjungan Senior Vice President ExxonMobil Corporation Mark W. Albers pada Kamis (6/4), terdapat sinyal positif pengembangan blok tersebut. Menurutnya, ExxonMobil akan menyampaikan komitmennya untuk melakukan percepatan proyek melalui sebuah surat yang akan dikirim dalam kurun waktu sebulan

Sebelumnya, terdapat opsi untuk meneken kontrak kerja sama Blok East Natuna antara ExxonMobil dengan pemerintah pada 2016. Namun, hal itu batal dilakukan karena kajian pasar dan teknologi masih berjalan.

Bisnis Indonesia, Page-23, Thursday, April, 20, 2017

Gas Blocks Transition Rules Published

The regulation requires that a new contractor replaces the old contractor investment.

Ministry of Energy and Mineral Resources released a new transition rule regarding working areas of oil and gas out of contract. According to Deputy Minister of Energy Arcandra Tahar, the policy aims to restrain the rate of decline in oil production.

During this time, upstream oil and gas companies tend to hold an investment in the future block contract expires. In fact, the flow of capital needed to get oil and gas production is maintained. If there is no investment, oil and gas blocks will undergo natural production decline.

The new regulations will require a new manager to replace oil and gas blocks investment costs already incurred the old manager. The goal that the previous block operator would not invest, even though his contract expires.

Arcandra pointed out, the old contractor to pay $ 10 million to drill two years before the contract expires. The money would be replaced by a new operator.

Under the rules, the amount of the payment must be approved Special Unit of Upstream Oil and Gas (SKK Migas). Payment commitments contained in the agreement will be signed by the contractor of old and new contractors.

The payment obligation is also included in the determination letter issued management of oil and gas blocks Ministry of Energy. SKK Migas head Amien said earlier Sunaryadi contract certainty greatly affect the flow of investment in an oil and gas block. For example, oil production Sanga-Sanga offshore East Kalimantan, which decreased from 12 thousand barrels per day last year to only 8 thousand barrels per day this year.

Virginia oil and gas concession-run Oil Company (Vico) it will pass into the hands of PT Pertamina next year.

"Obstacles indeed a matter of time for the contract will be expired. We focus on curbing production, "said Vice President of Community & External Affairs Vico, Ngurah Kresnawan.

Contract certainty of recovering oil also affects project (enhanced oil recovery / EOR) Block Rokan, Riau. Chevron Pacific Indonesia as the operator does not want to continue the EOR project in Minas Field waiting for certainty extension of operations after 2021.

President of Chevron Pacific Indonesia, Albert Simanjuntak, claiming EOR projects could potentially increase production of 17-22 percent per one point of drilling. Another reason the termination of the project, Albert added because of low oil prices. Chevron knew to have conducted two pilot phase which cost about US $ 222 million.

IN INDONESIAN

Aturan Transisi Blok Migas Diterbitkan

Regulasi mewajibkan kontraktor baru mengganti investasi kontraktor lama.

Kementerian Energi dan Sumber Daya Mineral merilis aturan transisi baru mengenai wilayah kerja minyak dan gas bumi yang habis masa kontraknya. Menurut Wakil Menteri Energi Arcandra Tahar, kebijakan itu bertujuan menahan laju penurunan produksi migas.

Selama ini, perusahaan hulu migas cenderung menahan investasi di blok yang masa kontraknya akan berakhir. Padahal, aliran modal diperlukan supaya produksi migas tetap terjaga. Jika tidak ada investasi, blok migas akan mengalami penurunan produksi alamiah.

Regulasi baru akan mewajibkan pengelola baru suatu blok migas mengganti biaya investasi yang sudah dikeluarkan pengelola lama. Tujuannya supaya operator blok sebelumnya tidak ragu mengeluarkan investasi, meski kontraknya akan kedaluwarsa. 

Arcandra mencontohkan, kontraktor lama mengeluarkan uang US$ 10 juta untuk mengebor sumur dua tahun sebelum kontrak berakhir. Uang itu akan diganti oleh operator baru.

Berdasarkan aturan itu, besaran pembayaran harus disetujui Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas). Komitmen pembayaran nantinya akan terdapat dalam perjanjian yang diteken kontraktor lama dan kontraktor baru. 

Kewajiban pembayaran juga termasuk dalam surat penetapan pengelolaan blok migas yang diterbitkan Kementerian Energi. Kepala SKK Migas Amien Sunaryadi sebelumnya mengatakan kepastian kontrak sangat mempengaruhi aliran investasi di suatu blok migas. Contohnya produksi minyak Blok Sanga-Sanga di lepas pantai Kalimantan Timur yang menurun dari 12 ribu barel per hari tahun lalu menjadi hanya 8 ribu barel per hari pada tahun ini. 

    Konsesi migas yang dikelola Virginia Oil Company (Vico) itu akan pindah ke tangan PT Pertamina tahun depan.

“Kendala kami memang soal waktu karena kontrak akan expired. Kami fokus menahan laju produksi," ujar Vice President Community & External Affairs Vico, Ngurah Kresnawan.

Kepastian kontrak juga mempengaruhi proyek pengurasan minyak (enhanced oil recovery/EOR) Blok Rokan, Riau. Chevron Pacific Indonesia sebagai operator tidak mau melanjutkan proyek EOR di Lapangan Minas karena menunggu kepastian perpanjangan operasi setelah 2021.

Presiden Direktur Chevron Pacific lndonesia, Albert Simanjuntak, mengklaim proyek EOR berpotensi menambah produksi 17-22 persen per satu titik pengeboran. Alasan lain penghentian proyek, Albert menambahkan karena harga minyak yang rendah. Chevron diketahui sudah melakukan dua tahap uji coba yang menghabiskan biaya sekitar US$ 222 juta.

Koran Tempo, Page-21, Wednesday, April, 19, 2017

Energi Mega Will Buy 25% ONWJ

The government approved the purchase by way of business to business

PT Energi Mega Persada Tbk, a company under the Bakrie Group, intends to acquire shares or participating interest (PI) in the Offshore North West Java (ONWJ). Currently the company is still waiting for official approval by the government.

The block is the majority owner of PT Pertamina Hulu Energi ONWJ (PHE ONWJ) with a share of 58.28%. Then Energi Mega Persada has a 36.72% stake and Kufpec Indonesia (ONWJ) BV amounting to 5%

Just before the contract expires on January 18, 2017, the Ministry of Energy and Mineral Resources (EMR) to change the composition of the three stocks. PHE ONWJ got 73.5% of the shares, Energi Mega Persada 24% and Kufpec only 2.5%.

Against the reduction, when the contract expires there is no confirmation of both Pertamina's partners to rejoin manage ONWJ. Finally, PHE ONWJ holding a 100% stake in ONWJ, which is then given to the area by 10% through the Oil and Gas Upstream PT Jabar, enterprises of West Java province in the oil and gas sector.

Chief Investor Relations of Energi Mega Persada Herwin Wahyu Hidayat said, the company is indeed still want to sign in ONWJ. But the plan still depends on government decisions. Including decisions related to the amount of shares that can be acquired by the Indonesia Stock Exchange issuers coded these Enrg.

So, Herwin not been able to mention the amount of shares that can be digengam by this company. "We are waiting for the government's decision," said Herwin

Pertamina's upstream director Syamsu Alam stated ENRG want to get a 25% stake in ONWJ. Pertamina already get government permission to carry out the share down. But he did not specify whether it will invite old partners, namely ENRG and Kufpec or Contractor Contract (PSC) others who are interested have a stake in ONWJ.

Deputy Minister Arcandra Tahar said, the mechanism is different from the Mahakam block. "Just like Mahakam, submitted to Pertamina. The mechanism is Business to Business, he said.

The investment costs

Meanwhile, Pertamina claims there are still investment costs that have not been returned alias unrecovered cost of US $ 450 million from the three companies that manage ONWJ block it when the contract expired. Though the company has been doing long-term investment in ONWJ

Thus, Pertamina asked the government to add a split of gross revenue share split, which has been applied since January 18, 2017 last. It is appropriate Decree No. 26/2017 on investment cost recovery mechanism in the upstream oil and gas activities which had just appeared.

Herwin said they still expect a refund of investment costs incurred before the contract expires ONWJ cooperation. But, he could not mention the amount of the investment costs that belong Enrg. The reason is that the investment cost is still being calculated by PHE ONWJ as the operator of the oil and gas blocks. "We do not know whether there are still funds in ONWJ. All still counted Pertamina. We waited, Herwin said.

"ONWJ actually still have a pretty good oil and gas production. This year, Pertamina targets ONWJ production of 36,000 bopd and gas amounted to 172 MMSCFD. The figure was raised from actual production in 2016.

IN INDONESIAN

Energi Mega Akan Membeli 25% Blok ONWJ

Pemerintah merestui pembelian tersebut dengan cara business to business

PT Energi Mega Persada Tbk, perusahaan di bawah Grup Bakrie, berniat memiliki saham atau participating interest (PI) di Blok Offshore North West Java (ONWJ). Saat ini perusahaan ini masih menunggu restu resmi pemerintah.

Pemilik mayoritas blok tersebut adalah PT Pertamina Hulu Energi ONWJ (PHE ONWJ) dengan porsi 58,28%. Lalu Energi Mega Persada memiliki 36,72% saham dan Kufpec Indonesia (ONWJ) BV sebesar 5%

Saat menjelang kontrak berakhir pada 18 Januari 2017, Kementerian Energi dan Sumber Daya Mineral (ESDM) mengubah komposisi saham ketiganya. PHE ONWJ mendapat 73,5% saham, Energi Mega Persada 24% dan Kufpec hanya 2,5%.

Terhadap pengurangan itu, saat kontrak berakhir tidak ada konfirmasi dari kedua mitra Pertamina itu untuk ikut kembali mengelola Blok ONWJ. Akhirnya, PHE ONWJ menggenggam 100% saham ONWJ, yang kemudian diberikan ke daerah sebanyak 10% melalui PT Migas Hulu Jabar, BUMD Provinsi Jawa Barat di sektor migas.

Chief Investor Relations Energi Mega Persada Herwin Wahyu Hidayat menyatakan, perseroan ini memang masih ingin masuk di Blok ONWJ. Namun rencana itu masih tergantung keputusan pemerintah. Termasuk diantaranya keputusan terkait besaran saham yang bisa didapat oleh emiten Bursa Efek Indonesia berkode ENRG tersebut.

Maka, Herwin belum bisa menyebutkan besaran saham yang bisa digengam oleh perseroan ini. "Kami menunggu keputusan pemerintah," ujar Herwin 

Direktur Hulu Pertamina, Syamsu Alam menyatakan ENRG ingin mendapatkan 25% saham di Blok ONWJ. Pertamina sudah mendapatkan izin pemerintah untuk melangsungkan share down. Namun dia tidak menjelaskan apakah akan mengajak mitra lama, yakni ENRG dan Kufpec atau Kontraktor Kontrak Kerja Sama (KKKS) lain yang berminat memiliki saham di ONWJ.

Wakil Menteri ESDM Arcandra Tahar bilang, mekanismenya tidak berbeda dengan Blok Mahakam. "Sama seperti Mahakam, diserahkan ke Pertamina. Mekanismenya Business to Business, katanya.

Biaya investasi

Sementara itu, Pertamina mengklaim masih ada biaya investasi yang belum dikembalikan alias unrecovered cost sebesar US$ 450 juta dari ketiga perusahaan yang mengelola Blok ONWJ itu saat kontrak blok tersebut berakhir. Padahal perusahaan ini sudah melakukan investasi jangka panjang di ONWJ

Maka, Pertamina meminta kepada pemerintah agar menambah split dari bagi hasil gross split yang sudah diterapkan sejak 18 Januari 2017 lalu. Hal ini sesuai Peraturan Menteri No. 26/2017 tentang mekanisme pengembalian biaya investasi pada kegiatan usaha hulu migas yang baru saja terbit.

Herwin menyatakan, pihaknya masih berharap mendapatkan pengembalian biaya investasi yang telah dikeluarkan sebelum kontrak kerja sama Blok ONWJ berakhir. Tapi, dia tidak bisa menyebut besaran biaya investasi yang menjadi milik ENRG. Pasalnya biaya investasi itu masih dihitung oleh PHE ONWJ selaku operator blok migas tersebut. "Kami belum tahu apakah masih ada dana kami di ONWJ. Semua masih dihitung Pertamina. Kami menunggu, kata Herwin.

“ Blok ONWJ sejatinya masih memiliki produksi migas yang cukup baik. Tahun ini, Pertamina menargetkan produksi ONWJ sebesar 36.000 bopd dan gas sebesar 172 mmscfd. Target tersebut naik dari realisasi produksi tahun 2016.

Kontan, Page-14, Wednesday, April, 19, 2017

New Operator Must Cash Payer

Contractors who took over the oil and gas blocks that have been out of contract must refund the costs incurred the previous operator in cash.

In the transition to a new operator management, the existing contractor was given a charge to keep the oil and gas production does not go down. Referring to Article 5, Ministry of Energy and Mineral Resources No. 26/2017 on Investment Returns Upstream Oil and Gas, regulated return on investment cost for a contract extension that implement schemes for the return expense or cost recovery operations can be resumed.

Conversely, if the profit-sharing scheme that block the switch from cost recovery into a contract for gross proceeds or gross split, the cost of investment in the transition period is also the investment costs undelivered / unrecovered cost factored into contractors section.

Article 6 Mentari MEMR Regulation No. 26/2017 states that if the contract was not renewed and there are still investment costs have not been returned, repayment burden carried by the new contractor. The return value of the investment cost will cover the remaining costs have not reverted to the old contract.

In Article 8 stipulates that the value of the return on the investment cost included in the determination letter new working area and a new cooperation contract. The value of the investment returns earned by the contractor on completion made by the new contractor will be accounted for as a deduction of operating costs in existing contractor.

Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said based on historical work areas will be out of contract, oil and gas production always goes down when the contractor reduced investment and activity in the oil and gas blocks.

Reduced investment due to the uncertainty of the return on investment at the end of contract oil and gas blocks. To maintain this level of production, the government issued rules to keep the oil and gas production could be restored by the next contractor who got good management rights through the mechanism of contract extensions or new contracts.

The new contractor will bear the cost of which has not been returned to the previous contractor. However, he does not mention in detail the cost of the replaced just to maintain production investment cost or the total cost of which has not been returned through cost recovery scheme.

He added, the new contractor costs incurred at the beginning of the contract period will not be hurt because the new contractor was able to enjoy the results of the activities carried out by the old contractor. The benefit of the new contractor in the form of production is higher than when the old contractor does not perform any investment.

"At the moment take over, PSC / schemes for the results of a new well, a new contractor will have to pay," he said yesterday (17/4).

In response to the policy, the Executive Director of the Indonesian Petroleum Association (IPA) Marjolijn Wajong said, the scheme will be of interest to the assets that still offer economical enough for the contractor.

"If the economics are good, then it could be accepted by the new contractor, but if it is bad economics, it is difficult to be accepted by the new contractor."

Pertamina Upstream Director Syamsu Alam said it will be budgeted investment returns in 2018 for unrecovery replacement cost in eight work areas that have been assigned by the government to the company.

IN INDONESIAN

Operator Baru Wajib Bayar Tunai

Kontraktor yang mengambil alih blok minyak dan gas bumi yang telah habis masa kontraknya wajib mengembalikan biaya yang telah dikeluarkan operator sebelumnya secara tunai.

Pada masa transisi pengelolaan ke operator yang baru, kontraktor existing telah mengeluarkan biaya untuk menjaga produksi minyak dan gas bumi tidak turun. Mengacu pada Pasal 5, Peraturan Menteri ESDM No. 26/2017 tentang Pengembalian lnvestasi Kegiatan Usaha Hulu Minyak dan Gas Bumi, diatur tentang pengembalian biaya investasi untuk perpanjangan kontrak yang menerapkan skema bagi hasil pengembalian biaya operasi atau cost recovery bisa dilanjutkan.

Sebaliknya, jika skema bagi hasil pada blok tersebut beralih dari cost recovery menjadi kontrak bagi hasil kotor atau gloss split, biaya investasi di masa transisi juga biaya investasi yang belum dikembalikan/unrecovered cost diperhitungkan dalam bagian kontraktor.

Pasal 6, Peraturan Mentari ESDM No. 26/2017 menyebutkan, jika kontrak tidak diperpanjang dan masih terdapat biaya investasi yang belum dikembalikan, beban pengembalian dilakukan oleh kontraktor yang baru. Adapun nilai pengembalian biaya investasi mencakup sisa biaya yang belum dikembalikan pada kontrak lama.

Pada Pasal 8 mengatur bahwa nilai pengembalian atas biaya investasi dicantumkan dalam surat penetapan pengelolaan wilayah kerja baru dan kontrak kerja sama baru. Nilai pengembalian investasi yang diterima oleh kontraktor atas penyelesaian yang dilakukan oleh kontraktor baru akan diperhitungkan sebagai pengurang biaya operasi pada kontraktor existing.

Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan berdasarkan historis wilayah kerja yang akan habis masa kontraknya, produksi migas selalu turun ketika kontraktor mengurangi investasi dan kegiatan pada blok migas tersebut.

Berkurangnya investasi disebabkan ketidakpastian pengembalian investasi pada masa akhir kontrak blok migas. Untuk mempertahankan tingkat produksi, pemerintah mengeluarkan aturan untuk menjaga produksi migas bisa dikembalikan oleh kontraktor berikutnya yang mendapat hak pengelolaan baik melalui mekanisme perpanjangan kontrak atau perolehan kontrak baru.

Kontraktor yang baru nantinya menanggung biaya yang belum dikembalikan kepada kontraktor sebelumnya. Namun, dia tidak menyebut secara detail biaya yang diganti hanyalah biaya investasi untuk mempertahankan produksi atau keseluruhan biaya yang belum dikembalikan melalui skema cost recovery.

Dia menilai, biaya yang dikeluarkan kontraktor baru pada awal masa kontrak tidak akan merugikan karena kontraktor yang baru sudah bisa menikmati hasil kegiatan yang dilakukan oleh kontraktor lama. Manfaat yang dinikmati kontraktor baru yakni berupa produksi yang lebih tinggi dibandingkan bila kontraktor lama tidak melakukan investasi apapun.

“Pada saat di take over, PSC/skema bagi hasil juga baru, kontraktor baru yang harus membayar," ujarnya, Senin (17/4).

Menanggapi kebijakan itu, Direktur Eksekutif Indonesian Petroleum Association (IPA) Marjolijn Wajong mengatakan, skema tersebut akan menarik bagi aset-aset yang masih menawarkan keekonomian yang cukup bagi kontraktor.

“Kalau secara keekonomian baik, maka bisa diterima oleh kontraktor baru, tetapi kalau secara keekonomian jelek, maka sulit untuk diterima oleh kontraktor baru.” 

Direktur Hulu Pertamina Syamsu Alam mengatakan, pihaknya baru akan menganggarkan dana pengembalian investasi pada 2018 untuk penggantian unrecovery cost di delapan wilayah kerja yang telah ditugaskan oleh pemerintah kepada perseroan itu.

Bisnis Indonesia, Page-22, Wednesday, April, 19, 2017

Towards ExxonMobil Production of 205,000 bpd

PT ExxonMobil Cepu Ltd., operator of the Cepu block, is optimistic that oil production from the working area of oil and gas are located in East Java reached 205,000 barrels per day in line with the plan to increase production from Banyu Urip and Kedung Keris.

Field Public & Government Affairs Manager of ExxonMobil Cepu Ltd. Rexy Mawardijaya explained that Exxon is conducting a test production of oil in Banyu Urip up to 200,000 barrels per day (bpd).

"We're still doing tests of 200,000 barrels a day to test the reliability of the existing production tool," he said, Tuesday (18/4).

Volume and Banyu Urip oil production increased from 185,000 bpli since one year ago. The production tests have been done of the company since January 2017.

According to him, ExxonMobil should increase oil production from Cepu on government demands to raise total oil production targets ready for sale (lifting) of the national 815 000 bpd this year,

In addition, oil and gas companies from the United States pending an environmental impact assessment (EIA) of the Ministry of Environment and Forests (KLHK), after getting a recommendation from the Ministry of Energy and Mineral Resources (EMR) at the end of 2016.

Questioned the target completion of the EIA changes, Rexy reluctant to answer. However, he said, if the production has been increased to 200,000 bpd, ExxonMobil will supply approximately 24% of national oil lifting target.

"Now the process conducting meetings, hearings, consultation with KLHK. If the EMR is out recommendation just waiting on KLHKI "he said.

In Banyu Urip, ExxonMobil owns 45 oil wells from three different wells footprint. If specified, 45 wells 30 of which are production wells and 15 injection wells rest is.

Previously, the Banyu Urip is estimated to have reserves of up to 729 million barrels of oil. The greater amount of about 60% of the initial development plan that is 450 million barrels.

Fields related to Kedung Keris, ExxonMobil still setting the initial construction and design company after getting permission EIA.

The field has an oil content of up to 9 million barrels. Keris Kedung oil production of 5,000 bpd target. Previously, the construction of production facilities in Kedung Keris expected to be completed in 2020.

IN INDONESIAN

ExxonMobil Menuju Produksi 205.000 Bph

PT ExxonMobil Cepu Ltd., operator Blok Cepu, optimistis produksi minyak dari Wilayah Kerja minyak dan gas bumi yang berlokasi di Jawa Timur itu mencapai 205.000 barel per hari seiring dengan rencana penambahan produksi dari Lapangan Banyu Urip dan Kedung Keris.

Field Public & Government Affairs Manager ExxonMobil Cepu Ltd. Rexy Mawardijaya menjelaskan bahwa Exxon sedang melakukan tes produksi minyak di Lapangan Banyu Urip hingga 200.000 barel per hari (bph).

“Saat ini kami masih melakukan tes produksi 200.000 barel per hari untuk menguji keandalan alat produksi yang ada,” katanya, Selasa (18/4). 

Volume produksi minyak dan Banyu Urip ditingkatkan dari 185.000 bpli sejak satu tahun lalu. Tes produksi itu sudah dilakukan perusahaan sejak Januari 2017.

Menurutnya, ExxonMobil harus meningkatkan produksi minyak dari Cepu atas tuntutan pemerintah yang menaikkan total target produksi minyak siap jual (lifting) nasional pada tahun ini 815.000 bph,

Selain itu, perusahaan migas asal Amerika Serikat itu sedang menunggu keputusan analisis mengenai dampak lingkungan (Amdal) dari Kementerian Lingkungan Hidup dan Kehutanan (KLHK), setelah sebelumnya mendapatkan rekomendasi dari Kementerian Energi dan Sumber Daya Mineral (ESDM) pada akhir 2016.

Ditanyai target selesainya perubahan Amdal tersebut, Rexy enggan menjawab. Namun, dia mengatakan, jika produksi sudah ditingkatkan menjadi 200.000 bph, ExxonMobil akan memasok sekitar 24% target lifting minyak nasional. 

“Sekarang prosesnya melakukan pertemuan, sidang-sidang, konsultasi dengan KLHK. Kalau dari ESDM sudah keluar rekomendasinya hanya menunggu dari KLHKI" ujarnya.

Di Lapangan Banyu Urip, ExxonMobil memiliki 45 sumur minyak dari tiga tapak sumur yang berbeda. Jika dirinci, dari 45 sumur tersebut 30 di antaranya adalah sumur produksi dan 15 sisanya merupakan sumur injeksi.

Sebelumnya, Lapangan Banyu Urip ditaksir memiliki cadangan minyak hingga 729 juta barel. Jumlah tersebut lebih besar sekitar 60% dari rencana pengembangan awal yaitu 450 juta barel.

Terkait dengan Lapangan Kedung Keris, ExxonMobil masih menyiapkan konstruksi awal dan desain setelah sebelumnya perusahaan mendapatkan izin Amdal.

Lapangan tersebut memiliki kandungan minyak hingga 9 juta barel. Produksi minyak dari Kedung Keris ditargetkan 5.000 bph. Sebelumnya, pembangunan fasilitas produksi di Kedung Keris diperkirakan selesai pada 2020.

Bisnis Indonesia, Page-22, Wednesday, April, 19, 2017

Balikpapan Refinery Operates Again

Balikpapan refinery has a total capacity of 260 thousand barrels per day, consisting of two units of the refinery.

Pertamina refinery in Balikpapan, East Kalimantan, back in full operation after undergoing a gradual shut down for maintenance activities since March 6, 2017. "It was gradually reviving and already we started back in operation on 3 April," said General Manager of Pertamina Refinery Unit ( GM Pertamina RU) V Balikpapan Julian Dekri

Balikpapan refinery maintenance operations II lasted for 42 days from 6 March to 16 April 2017. Pertamina call the operation 'turn around' and involved 3,500 people who work shifts for 24 hours.

Turn around is regular maintenance overall refinery aimed at keeping production performance forward and held regularly every three to four years.

PT Pertamina successfully implement Balikpapan refinery turnaround schedule. Startup refineries began to be implemented gradually since 3 April 2017 in accordance with standard operating procedure (SOP) applies. Currently Balikpapan refinery II has begun to operate a full back.

"RU V Pertamina Balikpapan to thank you for the support of various stakeholders including the local community during the second Balikpapan refinery turnaround," said Yulian

"Our target turn around excellent, ie no accident (no fire and no environmental pollution), the quality of the best quality, timely, and cost effective,".

Turnaround activities done consistently on HSSE Golden Rules to ensure the safety, health, and environmental protection. Turn around Balikpapan refinery II involves about 3,500 workers in an effort to involvement of the local workforce in London and surrounding areas and conducted 24 hours.

Balikpapan refinery has a total capacity of 260 thousand barrels per day, consisting of two units, namely the first Balikpapan refinery with a production capacity of 60 thousand barrels per day and the second Balikpapan refinery with a production capacity of 200 thousand barrels per day. 

     Balikpapan refinery produces various types of fuel such as premium, pertalite, pertamax, diesel, LPG, jet fuel, Pertamina Dex, and various other products. Balikpapan refinery supplies about 26% of fuel in Indonesia and is the second largest refinery in Indonesia after the Cilacap refinery.

IN INDONESIAN

Kilang Balikpapan Beroperasi Lagi

Kilang Balikpapan memiliki kapasitas total sebesar 260 ribu barel per hari, terdiri atas dua unit kilang.

Kilang minyak Pertamina di Kota Balikpapan, Kalimantan Timur, kembali beroperasi penuh setelah bertahap dimatikan untuk menjalani kegiatan pemeliharaan sejak 6 Maret 2017. “Saat menghidupkan kembali pun bertahap dan sudah kami mulai kembali beroperasi pada 3 April lalu,” kata General Manager Pertamina Refinery Unit (GM Pertamina RU) V Balikpapan Julian Dekri

Operasi pemeliharaan kilang minyak Balikpapan II berlangsung selama 42 hari mulai 6 Maret hingga 16 April 2017. Pertamina menyebut operasi itu ‘turn around’ dan melibatkan 3.500 orang yang bekerja bergiliran selama 24 jam.

Turn around ialah perawatan berkala kilang secara menyeluruh yang bertujuan menjaga performa produksi ke depan dan dilaksanakan secara berkala setiap tiga sampai empat tahun.

PT Pertamina berhasil melaksanakan turn around kilang Balikpapan sesuai dengan jadwal. Startup kilang mulai dilaksanakan bertahap sejak 3 April 2017 sesuai dengan standard operating procedure (SOP) yang berlaku. Saat ini kilang Balikpapan II sudah mulai beroperasi penuh kembali.

“Pertamina RU V Balikpapan mengucapkan terima kasih atas dukungan dari berbagai pihak termasuk masyarakat sekitar selama masa turn around kilang Balikpapan II,” ujar Yulian

“Target kami turn around excellent, yaitu tidak ada accident( tidak ada kebakaran dan tidak ada pencemaran lingkungan), kualitas mutu terbaik, tepat waktu, dan tepat biaya,”.

Kegiatan turn around dilakukan dengan konsisten pada HSSE Golden Rules untuk menjamin aspek keselamatan, kesehatan kerja, dan perlindungan lingkungan. Turn around kilang Balikpapan II melibatkan sekitar 3.500 tenaga kerja sebagai upaya pelibatan tenaga kerja lokal di Balikpapan dan sekitarnya dan dilaksanakan 24 jam.

Kilang Balikpapan memiliki kapasitas total sebesar 260 ribu barel per hari, terdiri atas dua unit, yaitu kilang Balikpapan I dengan kapasitas produksi 60 ribu barel per hari dan kilang Balikpapan II dengan kapasitas produksi 200 ribu barel per hari. 

     Kilang BaIikpapan memproduksi berbagai jenis bahan bakar seperti premium, pertalite, pertamax, solar, elpiji, avtur, Pertamina dex, dan berbagai produk lainnya. Kilang Balikpapan menyuplai sekitar 26% BBM di Indonesia dan merupakan kilang terbesar kedua di Indonesia setelah kilang Cilacap. 

Media Indonesia, Page-18, Tuesday, April, 18, 2017